E*TRADE Is Dipping Below Support
Published on Thursday, 04 April 2013 06:56 Written by TradersHuddle Wire
New York, April 4th (TradersHuddle.com) - Shares of E*TRADE Financial Corporation (NASDAQ:ETFC) closed the trading session at $10.21 below calculated support at $10.36. The stock broke long setups, prompting the bulls to worry that this move might give the bears the upper hand.
E*TRADE Financial Corporation (NASDAQ:ETFC) provides online brokerage and related products and services primarily to individual retail investors. The company offers investor-focused banking, primarily sweep deposits and savings products.
E*TRADE's stock was trading in a well defined range with support at $10.36 and resistance at $11.82; given that this range was broken traders will be closely monitoring the stock's price action for clues of direction.
From a technical perspective, it can be expected that previous support becomes resistance, as the new range gets defined. However, $10.36 will remain in focus as E*TRADE's price action places the stock near the broken support. Traders will be waiting to see if it can bounce back and return to its previous range.
Traders wanting to establish a short position in E*TRADE can do so if the stock breaks the intraday low, or if the stock bounces back and selling materializes again at previous support of $10.36. However, if traders want to build a long position, the best entry point to do so is when the price action takes the stock back to calculated support.
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